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dylatess
dylatess, Attorney
Category: Bankruptcy Law
Satisfied Customers: 5154
Experience:  37 plus years of experience specializing in bankruptcy law
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I live in St. Petersburg, Fl. I was served with foreclosure

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I live in St. Petersburg, Fl. I was served with foreclosure notice an few days ago. I have a friend, who is a lawyer, responding to the court for me so that I can stay in the house a month or two. Will a bankruptcy get rid of a deficiency judgment against me? He does not handle bankruptcies...
My situation is:
I bought a little house with my retirement money so that I would have somewhere to go. I also own a piece of property in rural NC. Can they take that from me? Solid advice sorely needed.

Over 34 years, I have assisted my clients with debt problems having filed more than 32000 Chapter 7 and Chapter 13 Bankruptcy petitions.

YES, if you file a chapter 7 bankrupty, the bank will be able to take back their property by completing their foreclosure. But you will NOT be liable for any deficiiency owing to the bank after the property is sold. As for the undeveloped property, depending on its value, you may be able to keep it if it is worth less than $18000. Otherwise, the court will sell it and use the proceeds to pay your debts. Also, your SS benefits cannot be touched. I wish you well.

Customer: replied 3 years ago.

The undeveloped property is most likely less than $18,000.
Can they take the house I am moving into?

I am confused. You said your house is being foreclosed. Did you buy another house? Are you current on that mortgage?

Customer: replied 3 years ago.

Maybe I didn't ask clearly....See original question (Sorry to repeat).
"I live in St. Petersburg, Fl. I was served with foreclosure notice an few days ago. I have a friend, who is a lawyer, responding to the court for me so that I can stay in the house a month or two. Will a bankruptcy get rid of a deficiency judgment against me? He does not handle bankruptcies... My situation is: I bought a little house with my retirement money so that I would have somewhere to go. I also own a piece of property in rural NC. Can they take that from me? Solid advice sorely needed."


 


Optional Information: State/Country relating to question: Florida
Already Tried: I have not paid my mortgage for almost 1 year. The person who shared expenses moved out about that same time and I also lost my job of 14 years. Luckily I was retirement age, so I was able to apply for reduced social security.


Ok. thanks. Please understand that a bankruptcy only postpones a foreclosure. It does not make it go away. That is because the bank owns the property. And if you do not make payment arrangements they can foreclose and take back the property. Likewise, you cannot stay in it. But if it is foreclosed, you would not owe anything further to the bank for any deficiency if the house sells in foreclsoure for less than what the bank is owed. As for the land, it is protected and you would not lose it.
Sorry. I wish I could have better news. But I am olbigated to report the law as it applies. I wish you well. Please be so kind as to rate my answer ok or better so that I am compensted for helping you.
Customer: replied 3 years ago.

Please....we are talking about 2 different houses.


The one I am living in now is being foreclosed upon. When my job was eliminated, I took retirement money out and purchased another little foreclosure house that I will be moving into. Will the court take that away from me? I paid $33,000 for it. Thanks a lot and hope this is more clear. I appreciate it.

The house you are living in will be taken back by the bank. But you will not owe a deficiency.

As for the second home that you bought in foreclosure, as long as you make those payments, you can keep that house. Likewise, if you do not, that house can also be foreclosed. They key, however, is that you must move into this house before you file BK so that you claim it as your personal residence.

Again, the land is safe.

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